Hoeven: Enbridge Doubles Capacity On Petroleum Pipeline

Press Release

Gov. John Hoeven today joined officials of Enbridge Pipelines for a ceremonial commencement of their Phase 6 pipeline expansion in northwestern North Dakota. The ceremonial "valve turning" in Minot signaled a doubling of the company's 2007 pipeline capacity, from about 80,000 barrels a day to more than 161,000 barrels a day.

The project involved upgrading 13 pump stations along the pipeline route from western North Dakota to Clearbrook, Minnesota. The total cost for the expansion was approximately $145 million.

"We have worked with Enbridge directly and through our Pipeline Authority to significantly increase transport capacity in western North Dakota, and we're already working with them on some proposed new projects," Hoeven said. "The additional capacity created by Enbridge and others will stimulate greater production and create new jobs and opportunities in North Dakota's oil patch."

As a result of expansions by Enbridge and other companies, North Dakota pipeline capacity now exceeds production in the state. Hoeven said the state will continue to work toward increasing capacity because that will continue to drive increased production.

Hoeven and state officials are also working with Enbridge on other pipeline projects. The company indicated earlier this month that it is evaluating several new proposed projects to expand takeaway capacity from the region.

Previously, Enbridge shipped crude oil south from Steelman, Saskatchewan to Berthold. The company is now considering a proposal to add pumps to reverse the pipeline so that North Dakota producers could ship product into a pipeline that ships crude to refineries in the United States. In addition, Enbridge is evaluating the feasibility of a number of smaller pipeline gathering projects in North Dakota designed to provide state shippers with additional access into the system.

The company has said if it determines there is enough interest and economic viability to proceed with all or some of the proposed projects, it will begin the formal process this spring. If all agreements and government permitting can be secured this year, construction could begin in 2010.

Source